20% minimum wage rise proposed for Jakarta

20% minimum wage rise proposed for Jakarta

JAKARTA (JP): The All Indonesia Workers' Union (SPSI) has
proposed an increase of 20 percent in the minimum wage for
Jakarta and its surrounding areas.

"We have proposed a minimum wage increase from Rp 4,600 ($2)
to Rp 5,400 for Jakarta, Bogor, Tangerang and Bekasi areas,"
Bomer Pasaribu, SPSI chairman, told reporters at his office here
yesterday.

The proposal also includes other provinces and will take
effect in April after the manpower minister approves it, he said.

Bomer said the minimum wage increase for Bogor, Tangerang and
Bekasi towns was based on the growing cost of living in the
capital city of Jakarta.

Since Bogor, Tangerang and Bekasi have the same standard of
living as the capital, the same minimum wage is relevant, he
said. In addition, Bomer said, many workers here come from the
three towns.

"Jakarta's 12.3 million population at day time drops to 9.9
million at night because 2.4 million workers live in Bogor,
Tangerang and Bekasi," he said.

This year's increase was no longer based on the workers'
physical needs but their growing aspirations, he said.

"The people do not only need food, clothes and shelter but
also social contact, entertainment, et cetera," he said.

According to him, the country's minimum wage in general has
surpassed the physical need by up to 108 percent but only 88
percent of the life demand.

"We propose the increase, while still taking into
consideration the survival of the companies," he said.

He added that the salary increase should be balanced with the
company's productivity so that the employers can prosper too.

The union has urged its 27 regional units throughout the
country to submit proposals on the increase.

Based on the proposals received from the 27 provinces, the
union has urged the Ministry of Manpower to declare Batam the
area with the highest minimum wage, while Yogyakarta and East
Nusa Tenggara have the lowest.

Current minimum wages put Irian Jaya at the top of the list
with Rp 4,750 and Central Sulawesi at the bottom with Rp 2,800.

The national minimum wages will be officially announced by the
manpower minister next month after consultation with the national
council on wage affairs, which consists of representatives from
companies, workers and officials of some ministries.(030)